2 cryptocurrencies that could eclipse Shiba Inu

The shiba inus (SHIB -0.76%) cryptocurrency has come a long way in a short time. What started as a pure joke two years ago has skyrocketed in 2021 and many investors also expect it to post massive gains in the future. According to a price prediction from crypto exchange Changelly, based on analysis of social media discussions, the average Shiba Inu owner expects the coin’s price to double in 2023 and quadruple by 2025. .

I’m not here to rate the accuracy of Changelly’s price predictions for Shiba Inu, but there are several cryptocurrencies on the market that are expected to do even better over the next two years. In particular, I like what I see in Algorand (ALGO 1.32%) and Spotted (POINT -1.01%) today. Let’s take a closer look at these high-quality crypto investments and see if they are right for your portfolio.

Algorand: Like Ethereum on steroids

Algorand is a smart contract platform for decentralized applications, similar to Ethereum. This blockchain network was built with speed and low transaction fees in mind. Algorand’s fees currently stand at around $0.0004 per transaction, compared to Ethereum’s median transaction fee of $0.70. The network averaged 1.1 million transactions per day this week, also ahead of Ethereum’s 330,000 transactions executed per day. And that takes into account the new improved Ethereum structure here, not the even slower and more expensive version that was in effect until The Merge on September 15th.

Despite Algorand’s multiple advantages, the Ethereum platform has attracted a much larger community of developers. Time is an important factor here. Ethereum has been around since 2015, and the first Algorand transaction took place in 2019, making the original smart contract platform almost twice as old as the fastest challenger.

However, Algorand is currently working on a bridge protocol that will make its platform fully compatible with code developed for Ethereum. This tool won’t erase Ethereum’s advantage, but it will give app makers another platform choice that can be adopted with minimal coding effort, allowing the two systems to compete on equal footing. equality.

Also, Ethereum just reduced its carbon footprint by 99.95%, but Algorand is actually carbon negative by design. This is an important selling point for projects that pay close attention to their environmental impact.

And Algorand doesn’t need to beat Ethereum to be a successful investment. Its market value stands at just $2.7 billion today, essentially a rounding error compared to Ethereum’s footprint of $163 billion. If Algorand can only gain a tenth of the attention of Ethereum developers in the long run, the digital coin is expected to outperform Ethereum by a sixfold ratio. This growth opportunity is far more exciting than the Shiba Inu’s limited usability.

Polkadot: the cornerstone of the Web3.0 redesign

The Polkadot blockchain network takes a different approach to smart contracts and digital transactions. Rather than trying to be the best at one or more of these functions, Polkadot was designed to connect other crypto projects with each other. This way, a Polkadot developer can take full advantage of each digital coin’s best qualities while avoiding their drawbacks.

This unique network design is combined with an advanced ecosystem. Through Polkadot’s tiered system of parachain auctions and crowdlending, the platform provides direct financial support to innovators and their projects.

Polkadot’s revolutionary plan of attack makes perfect sense when you consider the network’s history and goals. It was created by Ethereum co-founder Gavin Wood and the Web3 Foundation. In short, Web3 is a radical overhaul of the internet as we know it, and this vision of a blockchain-based future was crafted around the Polkadot network.

I will concede that Polkadot may not double in price next year or quadruple by 2025, as it may take a few years for the Web3.0 sea change to occur. However, as a crucial component of the next-generation Internet, Polkadot’s long-term growth prospects are enormous. If Polkadot isn’t worth hundreds of billions in 10 years – down from $7.4 billion now – I’ll have to buy a hat and eat it with a pinch of basil. I can’t say the same for Shiba Inu, which I expect to die out over time.

Anders Bylund holds positions at Algorand, Ethereum, and Polkadot. The Motley Fool has positions in and recommends Ethereum. The Motley Fool has a disclosure policy.

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